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185 loan to subsidiary Co
do a company give direct loan to its subsidiary?
Replies (10)
any loan made by a holding company to its wholly owned subsidiary company or any guarantee given or security provided by a holding company in respect of any loan made to its wholly owned subsidiary company;...
As per amendments made under section 185 .. company can extend loan to its subsidiary
yes loan can be extended but it's through bank or fi in sense holding company can provide security and guarantee but Not direct loan to subsidiary.
A holding company can provide loan, security or guarantee to its wholly owned subsidiary company .. Provided the loan so provided is utilised only for its principal activities of the business and not for any other purpose
yes But if subsidiary is not wholly owned then what?
direct loan to a subsidiary not wholly owned possible?
direct loan to a subsidiary not wholly owned possible?
no not possible as its clearly stated wholly owNed subsidiary
then it shall be as per provisions of 186?
Yes according to my interpretation .. and
1.the company has to pass resolution for the same
2. it should be within the prescribed limit
3. co. should also intimate to the members by stating in financials of the company
1.the company has to pass resolution for the same
2. it should be within the prescribed limit
3. co. should also intimate to the members by stating in financials of the company
yes this I know... thankyou so much for your help.
so nice of you
so nice of you
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